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1. I do not think this is quite right. I cannot see that any "breach of faith" arises if we let the Chancellor and Defence Secretary know that we propose to seek the Governor's views. We should give them a chance to object before we actually consult Mr Patten but be prepared to argue strongly that that course must be followed.

2.

I have accordingly adjusted the draft minute to the Chancellor.

We should not telegraph Hong Kong now but wait for a few days. The telegram itself should be looked at again in the light of any Treasury and MOD reactions. Some of it, e.g. paragraph 4, will need redrafting in any case.

toles. folen

18 November 1993

CC:

PS/Mr Goodlad

Sir T Daunt

Mr Morris, HKD

Sir John Coles

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